Poverty growth in Scandinavian countries: A Sen multi-decomposition
AbstractWe show in this paper that the growth rate of the Sen index is multi-decomposable, that is, decomposable simultaneously by subgroups and income sources. The multi-decomposition of the poverty growth yields respectively: the growth rate of the poverty incidence (poverty rate) decomposed by subgroups, the growth rate of the poverty depth (poverty gap ratios) decomposed by sources and subgroups, and the growth rate of inequality decomposed by sources and subgroups. We demonstrate that the multi-decomposition is not unique. It is mainly dependent on poverty lines defined on the space of income sources. An application to Scandinavian countries shows that poverty lines based on non-correlation between the income sources imply serious risks of underestimation of the contribution levels of the different components of the global poverty growth. The main contribution of our paper is to pay particular attention to the poverty growth and its source components in order to avoid underestimation of poverty growth.
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Bibliographic InfoArticle provided by Elsevier in its journal Economic Modelling.
Volume (Year): 28 (2011)
Issue (Month): 6 ()
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Web page: http://www.elsevier.com/locate/inca/30411
Gini index; Sen index; Source decomposition; Subgroup decomposition;
Other versions of this item:
- Stéphane Mussard & Maria Noel Pi Alperin, 2010. "Poverty Growth in Scandinavian Countries: A Sen Multi-decomposition," Working Papers 10-10, LAMETA, Universtiy of Montpellier, revised Sep 2010.
- Stéphane Mussard & Pi Alperin María Noel, 2010. "Poverty Growth in Scandinavian Countries: A Sen Multi-decomposition," Cahiers de recherche 10-21, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- MUSSARD Stéphane & PI ALPERIN Maria Noel, 2010. "Poverty Growth in Scandinavian Countries: A Sen Multi-decomposition," CEPS/INSTEAD Working Paper Series 2010-29, CEPS/INSTEAD.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
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- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
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